Brixmor Property Group Inc (BRX, Financial) released its 8-K filing on July 29, 2024, reporting robust financial results for the second quarter of 2024. The company, a real estate investment trust (REIT) specializing in grocery-anchored community and neighborhood shopping centers across the United States, demonstrated significant growth in key performance metrics.
Company Overview
Brixmor Property Group Inc is a real estate investment trust based in the United States. The company owns and operates a portfolio of grocery-anchored community and neighborhood shopping centers across the United States. It leases its rentable areas to retailers, restaurants, theatres, entertainment venues, and fitness centers, with the company's tenants consisting of large department stores, discount retailers, and grocery stores. The company is an internally managed REIT. The company operates in Florida, Texas, California, New York, Pennsylvania, Illinois, New Jersey, Georgia, North Carolina, Michigan, Ohio, and other states.
Financial Performance and Key Metrics
For the three months ended June 30, 2024, Brixmor Property Group Inc reported net income of $0.23 per diluted share, surpassing the analyst estimate of $0.22 per share. This marks an increase from $0.19 per diluted share in the same period of 2023. The company's revenue for the quarter was $318.25 million, aligning with analyst expectations.
Operational Highlights
Brixmor executed 1.4 million square feet of new and renewal leases, achieving record rent spreads on comparable space of 27.7%, including 0.6 million square feet of new leases with rent spreads of 50.2%. The company also increased its total leased occupancy to a record 95.4%, with anchor leased occupancy at 97.5% and small shop leased occupancy at 90.8%.
Financial Achievements
The company reported an increase in same property net operating income (NOI) of 5.5% for the quarter, driven by a 380 basis point contribution from base rent. Additionally, Brixmor's Nareit Funds From Operations (FFO) was $163.8 million, or $0.54 per diluted share, up from $157.1 million, or $0.52 per diluted share, in the same period of 2023.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Income per Diluted Share | $0.23 | $0.19 |
| Nareit FFO per Diluted Share | $0.54 | $0.52 |
| Same Property NOI Growth | 5.5% | N/A |
Balance Sheet and Cash Flow
As of June 30, 2024, Brixmor had $1.7 billion in liquidity. The company's net principal debt to adjusted EBITDA, current quarter annualized, was 5.6x, and net principal debt to adjusted EBITDA, trailing twelve months, was 5.8x. During the quarter, Brixmor issued $400.0 million of 5.750% Senior Notes due 2035, with proceeds earmarked for general corporate purposes, including debt repayment.
Portfolio and Investment Activity
Brixmor stabilized $36.8 million of reinvestment projects at an average incremental NOI yield of 9% and added five new reinvestment projects to its pipeline. The company also completed $17.3 million of acquisitions and $0.3 million of dispositions during the quarter.
Guidance and Future Outlook
Brixmor updated its Nareit FFO per diluted share expectations for 2024 to $2.11 - $2.14, up from $2.08 - $2.11, and its same property NOI growth expectations to 4.25% - 5.00%, up from 3.50% - 4.25%. The company remains optimistic about its balanced, value-add business plan and its potential for continued growth.
“As a team, we are very proud of how our balanced, value-add business plan continues to deliver outstanding performance, and importantly, sets us up for continued growth as we advance our purpose of creating and owning centers that are the center of the communities we serve,” commented James Taylor, Chief Executive Officer.
For more detailed information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Brixmor Property Group Inc for further details.
